In another fund-raising plan Honda Siel to raise Rs 2,100 crore

MUMBAI: Honda Siel Cars India (HSCI), the joint venture between Honda Motor Co and the Shriram family of Usha International, is undertaking another round of fund raising, this time to raise Rs 2,100 crore, two persons close to the development said.

The move by the maker of Honda City and Honda Jazz cars to raise capital will further tighten the grip of the Japanese promoter in its Indian entity.

The Japanese partner currently holds a little less than 97% stake in HSCI, thus bringing in a vice-like grip over the Indian venture. The proposed plan to raise Rs 2,100 crore comes close to the recent rights issue in November last year, when the Japanese parent of the Indian subsidiary subscribed to the Rs 1,200 rights issue, while the Indian partner stayed away from subscribing to the rights issue.

In September 2011, a month before the rights issue, the sources said that the Shriram family through Usha International had raised their stake by invoking their option to buy back shares. They did this by acquiring 2.4% stake from Honda Motor Co in Honda Siel for Rs 45 crore, to take their stake to 5%. Usha International paid Rs 52.8 a share, to Honda Motor Co.

The decision to have another round of fund raising thus raises a question whether Usha International can rustle up cash to maintain its minority stake in the joint venture.

Sources in the know say the funds are needed for setting up manufacturing lines at Tapakura in Rajasthan where it also plans to build a components and diesel engine plant. Further the company is readying to launch six new cars, including re-launches, by 2015, which will need a substantial amount of investment.

By not participating in the November rights issue, the Indian promoter's stake had declined to 3.16% from 5%.

An email query to Honda Siel on the fundraising received a cryptic response. "India is definitely among the key markets for Honda, and HSCI is committed to this market with ambitious growth plans. However, we do not have any specific information to share at this moment," the company replied.

"There are no developments. We may even keep our stake," Krishna Shriram, the scion of the Shriram family, said, when asked if Usha International, the holding firm for the family, will sell its stake.

Later Krishna Shriram elaborated his group's apprehension, perhaps for the first time. "Our concerns are the missteps in acceptable corporate governance issues in letter and spirit by HSCI. A mature acknowledgement of this is what we would seek. Valuation methodologies and cash values are secondary issues."

"We will have many partnerships in future and we do not want our reputation as exceptional partners clouded by the current proceedings," Krishna added.

In 1995, Shriram Industrial Enterprise Ltd entered into a 40:60 JV with Honda Motor Company to form HSCI. In order to meet the group's expansion plan, Siddharth Shriram later sold 38% stake in HSCI, with an option of buyback. With Indian subsidiary getting further capitalised by the parent to meet the expansion plans, Siel's right to buyback almost halved.Automobile News

To launch new Ritz facelift in plan by Maruti soon

Maruti Suzuki, the country’s leading car maker, is gearing-up to launch an upgraded version of its popular hatchback Ritz very soon. This will be the first ever face-lifted version of Maruti Ritz in the Indian market since its launch in the country three years back.
Recently, the spy picture of the all new Maruti Ritz facelift was posted on the Facebook page of the car, which attracted a large number of admirers.
Taking a look at this spy shot of the new Ritz, it shows a considerable modification in the front profile of the car including a bolder chin, a more aggressive Audi-esque front grille, bonnet with a new design and newly styled housings for the front fog lamps.
Inside, the car will be blessed with a number of cosmetic upgrades including expected new interior color theme, improved quality of materials etc.
As far as engine system of the new Ritz facelift is concerned, it is most likely to carry forward the same petrol and diesel engine options available in the current model of the car including a 1.2L petrol engine that generates a peak power of 84 bhp and 1.3L multijet diesel engine that delivers a top output of 74 bhp.Automobile News

AT version of Nissan Sunny set to roll out in February 2013

Nissan India is mulling to amplify its Nissan Sunny sedan range by brining in the automatic variant soon. However, this AT variant might not arrive this year, but rumor has it that Nissan Sunny automatic will hit the Indian market by the month of February 2013. The Nissan Sunny Automatic variant will be offered in only petrol engine option and shall sport a basic CVT or Continuously Variable Transmission for the Indian car market just to cut down the costs here.
The Sunny Automatic variant will directly compete with Maruti Swift Dzire, which is currently being offered with four speed automatic gearboxes in petrol variant. The cherry on top for Maruti here is that it is currently the cheapest automatic gearbox equipped sedan in the Indian market today. As far as the pricing of Nissan Sunny Automatic variant is concerned, it is likely to be Rs. 80000 higher than the current Nissan Sunny petrol variant powered by manual gearbox.Automobile News

By end of this month New 2012 Hyundai Sonata coming!

Hyundai Motors India Limited (HMIL), country’s largest car maker and the second largest car exporter in the Indian auto market, is all set to launch its new premium sedan Hyundai Sonata in the Indian market in the last week of this month. The new 2012 Hyundai Sonata is blessed with new Fluidic design concept of the South Korean auto giant, and the company is hoping to receive the same response received by its Verna Fluidic sedan.
The company had showcased the new Sonata 2012 at the Delhi auto expo in the month of January 2012, where it had received an overwhelming response by the car enthusiasts. Powered by a 2.4 litre GDI engine, the car delivers a peak power of 201 PS @ 6300 rpm along with a peak torque of 25.5 Kgm @ 4250 rpm. Moreover, there will be options of a six speed manual and automatic transmission to choose from.
The new Sonata Fluidic model will be carrying a number of new age comfort & convenience and safety features including rear seat ventilation, cruise control, Xenon head lamps, paddle shift, 10-way adjustable power seat with lumber support, 4-way power adjustable front co-driver seat, 6 airbags, Electronic Stability program (ESP), rear view camera with push button start and anti-lock braking system (ABS) with electronic brake force distribution (EBD).Automobile News

Summer Check up Camp to commence form 2nd April’12 by Skoda

Skoda Auto India, a fully owned subsidiary of the Czech republic based leading car maker Skoda Auto, is ready to launch a month long Summer Check Up Camp for its customers in the Indian auto market. The camp will be commenced from 2nd of April’12 and will be held till 30th April’12. The Skoda Auto India dealerships spread across a number of cities in the country will be offering complimentary summer check up for the cars of visiting customers, followed by 15 point inspections of the car.
It is to be mentioned here that the 15 point check-up of the car include the inspection of the parts like AC, tyres, braking system, etc, which have high relevance in the summer season. This will help the car owners to be prepared for the upcoming summer season with a thorough check-up. Moreover, the engine, clutch, steering, tyres, electrical fittings, and wheel rims will also be completely checked-up.
Since its debut in the Indian market in year 2001, Skoda Auto has sold over 1.4 lakh cars in the Indian market so far. The company aims to check-up around 28,000 units of its sold cars in India through this month long Summer Check-up Camp.Automobile News

Honda plans to make India its diesel engine manufacturing hub- Post Budget 2012-13

Honda Motors, the Japan based leading car maker that has been aggressively working on increasing its market share in the Indian auto market, has now planned-up to make India its compact car diesel engine manufacturing hub in the coming years. The company, which currently sells only petrol version of its cars in India, will soon be having high in demand diesel car line-up in its India portfolio.
In the recently announced Union Budget 2012-13, the government of India has not imposed any additional taxes on the diesel run vehicles, giving a sigh of relief to the car makers like Honda, who had been opposing proposal of diesel vehicle duty hike.
The Japanese auto giant is now expected to go ahead with its diesel vehicle portfolio expansion plans, the initiation of which has already been started at Honda's R&D (Research & Development) centre in Tochigi, where the company engineers are creating prototypes of 1.4L to 1.5L diesel engines for compact cars.
About the company’s ongoing diesel engine development at their R&D center, Mr. Jnaneswar Sen, senior VP (sales & marketing) said, "Honda R&D is currently developing a small diesel engine. However, we do not have anything specific to share right now."Automobile News

A stunner, fluidic sculpture design and spacious interior 2012 Hyundai i20

The i20 has been a big hit for Hyundai and it has helped the company attain huge success globally. Due to high fuel efficiency and compact design, Hyundai i20 has been praised by auto enthusiast and journalists. After the success of the i20, the company is all set to introduce its facelifted version. Based on the fluidic sculpture, the new Hyundai i20 is also reported to have redesigned rims and bonnet, which is the effort of the Hyundai's design team. Bumpers and tail lamps have been redesigned by the company to make the car look attractive.
 Compared to the previous model, the new Hyundai i20 is expected to have spacious interiors. In the 2012 Geneva Motor Show, the new Hyundai i20 has been unveiled which has gained maximum attention of the audience. The overall width, height, and wheelbase of the car are 1,710 mm, 1,490 mm and 2,525 mm respectively. However, the length of the vehicle has been increased by 55 mm over its earlier model.
 A U-II diesel 1.1 litre 3-cylinder engine will be provided for the European market. Among all powertrain cars, the new i20 has the lowest CO2 emissions. Only 84 g/km of CO2 is emitted when the engine is mated with Hyundai’s Blue Drive tech. Compared to many hybrids the CO2 emission of this car is lower, which will help it position itself in markets like UK where car tax depends on CO2 ratings. Apart from this, there will be a 1.4 litre ‘U-II’ 90 PS engine, which emits 96 g/km.
 In the Indian market, the car will soon make its entry. As per company information, the facelifted version will be manufactured in the Chennai facility of Hyundai. India already has new Maruti Swift, Nissan Micra, Volkswagen Polo, and Toyota Etios Liva, which will be the prime competitor of new Hyundai i20.Automobile News

A major market share eyed by Volvo and Eicher group

The Indian auto market has witnessed several global auto makers and after the high profile passenger car market, it is the truck segment which has been in the lime light. Now it has been reported that it is now over three years since the Volvo group and Eicher Motors came together to create VE Commercial Vehicles and according to its Chief Executive Officer, Vinod Aggarwal, the best is yet to come.
He said that, “It has been a wonderful joint venture and the trust between the partners has been the high point of this journey. We now want to do a lot more in terms of products and synergies.” The strength lies in the business processes of Volvo and its profound knowledge of reliability issues and after-sales. Eicher is learning these aspects and implementing them in its daily working schedules at the Pithampur plant. It was said that in addition, there is a full-time person from UD Trucks of Japan working on quality management who is driving change within the organisation. Incidentally, Volvo group owns the UD Trucks (formerly Nissan Diesel). “Our results speak for themselves in terms of margins which have almost doubled to nine per cent. In my view, processes are more important because you learn to carry out your business a lot better. We would like to have better efficiencies in productivity, marketing practices and so on,” Aggarwal said.
As the report further said that, VE Commercial Vehicles is now implementing an engine project to cater to Volvo's needs in Europe. These are Euro 6 engines which will be made here and tested in Europe. They can also be adapted for India's Euro 3 and 4 emission norms. From the Pithampur plant the company plans to produce 5,500 trucks each month through 2012. The optimum capacity here is 7,500 units which could be less than three years away if the present growth momentum continues. The focus will be on heavy duty trucks (over 15 tones capacity), where VE Commercial Vehicles has a market share of barely 3.5 per cent. It was mentioned that clearly, it is not an easy market to operate with strong players like Tata Motors and Ashok Leyland as well as competition coming in from the likes of Daimler and Scandia. “Results will take time because it is a business proposition, and not a status symbol, for the customer. He looks for reliability, fuel efficiency, comfort, turnaround and maintenance costs,” Aggarwal said.
Eicher is also planning to grow its brand presence in buses where it has a relatively strong presence in the light and medium segments. Plans are under way to ramp up its business of intercity coaches and low-floor city buses. It was reported that once Volvo's four global brands (Volvo, Renault, Mack and UD Trucks) eventually enter the Indian market; they will operate in tandem with Eicher's own range. Thus far, the Swedish company's presence is largely confined to tippers assembled at its Hoskote plant near Bangalore. According to the business model, sales and distribution of all Volvo truck brands (and not buses) in India will operate through the joint venture which means manufacturing can be done anywhere.Automobile News

Range of off-road vehicles presented by Nebula Automotive

Nebula Automotive Pvt Ltd has formally showcased its range of ATVs, catering to the niche Indian market of off-road vehicles in India.

It was reported that this segment which has very few players, positions Nebula Automotive as a brand that caters to high-end off-road vehicles at an affordable price. The brand currently has 12 off-road vehicles in its portfolio, ranging from 110cc off-roaders for kids to 800cc amphibious ATVs for adults.

It was mentioned that they have two showrooms; the main showroom is headquartered in Pune, while the second showroom is in Navi Mumbai.Automobile News

The charm of the Bentley Mulsanne to experience by Mumbai

After its official launch in 2010, the new Bentley Mulsanne is now on an ecstatic journey across India. As part of the Bentley Mulsanne Tour, Mulsanne will travel to six cities namely Mumbai, Pune, Hyderabad, Bangalore, Chennai and Ahmedabad. The tour has kick started from Mumbai, where the Bentley Mulsanne will be on display till February 22, 2012. With this tour, Bentley will now enter the other metros and key cities which are witnessing a growth in luxury car industry.  The tour aims to bring ‘at your doorstep’ experience for the valuable customers of Bentley. With an entirely handcrafted interior, Bentley has set new standards in sophistication and luxury. Bentley stands for constant innovation, distinctive design breathtaking power and performance and exhilarating driving experience.

And this is evident in all the Bentley models, Continental GT, Continental Flying Spur and of course the Mulsanne, which are perfect examples of craftsmanship and refinement. Speaking on the occasion, Mr. Satya Bagla, Managing Director, Exclusive Motors said, “We are happy to announce the Mulsanne six city tours. Last year we did the CFS tour in eight cities which was a success. Our customers are our priority and with the Mulsanne Tour we are directly reaching out to our future customers across key cities. We launched Bentley Mulsanne in the Indian market in 2010 for the Bentley car connoisseurs and have received a heartening response from our valued customers. Mumbai is an important market for us and the people here have a taste for the finer things in life.” The Mulsanne has been designed and engineered without compromise by Bentley’s craftsmen and engineers to combine refined performance and unparalleled levels of luxury with elegance for which the marque has long been renowned.

The Mulsanne offers customers a degree of choice, when customising their cars, which is unmatched in the industry.  The luxury Bentley flagship offers a palette of 114 paint colours, 21 carpet colours, nine wood veneers and 24 interior leather hides, all of which are tanned using a decades-old process to ensure this future classic retains its distinctive scent. In addition, through Bentley’s bespoke service, unique colours can be developed which will match a customer’s vision and taste. With more standard leather and wood veneer than any other Bentley in the modern era, it is understandable that each Mulsanne will take nine weeks to build.Automobile News